RINL IPO to hit markets in a fortnight, says Disinvestment Secretary

NEW DELHI: The government is planning to launch the initial public offer (IPO) of RINL within a fortnight, a top official said today.

"RINL IPO will hit the street on the second or third week of July," Secretary, Department of Disinvestment, Mohammad Haleem Khan told PTI.

The Rashtriya Ispat Nigam Ltd (RINL) will be the first PSU to tap the capital market this fiscal. The government is aiming to mop up Rs 2,500 crore by divesting its stake in the company.

The IPO of the state-owned steel maker was to hit the market in June. The launch has already been deferred once by three weeks, following the suggestions of the merchant bankers in view of subdued market conditions.

Last week, Khan had said that the DoD would move ahead with the stake sale of public sector companies without waiting for further improvement in the stock markets.

"If we have to achieve the target of Rs 30,000 crore this financial year, we cannot wait for the market to improve beyond a point. I think the market has bottomed out," he had said.

Last month, the management of RINL had written a letter to the Steel Ministry requesting deferring the IPO as employees' morale has touched a low after a fire that broke out at the company's Vizag plant killing 19 people, including 12 staffers.

The merchant bankers to the issue - UBS Securities India and Deutsche Equities (India) - had also advised DoD to defer the issue till September-October in the wake of the disaster.

RINL had submitted the draft red herring prospectus with the market regulator SEBI on May 18. The Cabinet Committee on Economic Affairs in January approved disinvestment of 10 per cent of government's stake in the firm.

The company has to bring out its IPO before November this year as its Navratna status, accorded on November 16, 2010, is subject to its getting listed within two years (from the date of acquiring the status).